Recently, it was reported that the public sector Indian Bank has revised the Benchmark Prime Lending Rate (BPLR) and increased the rates by 0.25% with immediate effect. The Chennai-headquartered bank has revised its BPLR from 14.25% to 14.50% per annum. In a bank statement, it was told that the base rate has been revised by 0.25% from the existing rate of 10% to 10.25% per annum with immediate effect.

Even the shares of Allahabad Bank, which are trading at Rs. 205, are increased by Rs. 2 or by 1%. Allahabad Bank has reported that the bank has decided to raise its base rate from existing 10.00% to 10.25% and Benchmark Prime Lending Rate (BPLR) from existing 14.25% to 14.50% from July 15, 2011. It was also observed that the total traded quantity reached 0.41 lakh shares on the BSE.

Director of Home Loan Advisors, an independent mortgage consultancy, Vipul Patel said: "If you have taken a loan just after 1 July, ensure that your bank has linked your rate to the base rate. This is applicable for clients who have borrowed before 1 July".

IndusInd Bank and HDFC Bank have not shifted their base rates because the base rate system is applicable only to the banks that are governed by the RBI whereas HDFC, LIC Housing Finance, etc, are regulated by the National Housing Board.